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Sensex, Nifty hit record high levels

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Last Updated : Nov 01 2017 | 10:47 AM IST

Key benchmark indices hit fresh intraday high in morning trade. At 10:32 IST, the barometer index, the S&P BSE Sensex, was up 351 points or 1.06% at 33,564.13. The Nifty 50 index was up 92.85 points or 0.90% at 10,428.15. Positive leads from Asian markets and overnight gains in the US market boosted investors' sentiment.

The Sensex and the Nifty, both, hit record high levels in morning trade. The Sensex rose 382.61 points, or 1.15% at the day's high of 33,595.74 in morning trade, its record high level. The index rose 127.49 points, or 0.38% at the day's low of 33,340.62 in opening trade. The Nifty rose 99.75 points, or 0.97% at the day's high of 10,435.05 in morning trade, its record high level. The index rose 47.75 points, or 0.46% at the day's low of 10,383.05 in opening trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.79%. The BSE Small-Cap index was up 0.83%. Both these indices underperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,611 shares rose and 671 shares fell. A total of 92 shares were unchanged.

Car major Maruti Suzuki India fell 0.18% after the company said its total sales rose 9.5% to 1.46 lakh units in October 2017 over October 2016. Domestic sales rose 9.9% at 1.36 lakh units in October 2017 over October 2016. Export sales rose 4.2% at 10,446 units in October 2017 over October 2016. The announcement was made during trading hours today, 1 November 2017.

Metal shares were in demand after copper price edged higher in the global commodities markets. Hindustan Copper (up 1.95%), Steel Authority of India (up 1.73%), Vedanta (up 1.43%), Hindalco Industries (up 1.14%), Tata Steel (up 0.85%), NMDC (up 0.82%), Jindal Steel & Power (up 0.80%), Hindustan Zinc (up 0.74%) and National Aluminium Company (up 0.73%), edged higher. Bhushan Steel was down 3.83%.

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JSW Steel was up 1.96% after net consolidated net profit rose 29% to Rs 836 crore on 17% growth in revenue from operations to Rs 16818 crore in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 31 October 2017.

JSW Steel's revenue from operations for the quarter is not comparable to previous periods due to the implementation of Goods and Services Tax (GST) with effect from 1 July 2017. On a consolidated basis, the company's operating EBITDA rose 4% to Rs 3036 crore in Q2 September 2017 over Q2 September 2016.

In its outlook, JSW Steel said that steel demand is expected to improve with government focus on infrastructure build up like roads, DFC, water & gas pipelines, metro, irrigation projects, solar energy, power T&D etc. Bank recapitalization will pave way for an uptick in credit growth and possible restart of the investment cycle, it added. High Grade Copper for December 2017 delivery was currently up 1.50% at $3.1475 per pound on the COMEX.

Power generation stocks were in demand. GMR Infrastructure (up 1.56%), Reliance Infrastructure (up 1.34%), NHPC (up 0.87%), Torrent Power (up 0.68%), Tata Power (up 0.65%), NTPC (up 0.55%), JSW Energy (up 0.47%), Reliance Power (up 0.37%), Adani Power (up 0.30%), Jaiprakash Power Ventures (up 0.25%) and CESC (up 0.08%), edged higher.

State-run Coal India was up 0.63%. State-run Power Grid Corporation of India was down 0.66%.

InterGlobe Aviation rose 1.58% after net profit jumped 294.4% to Rs 551.55 crore on 27% growth in revenue from operations to Rs 5290.98 crore in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 31 October 2017.

InterGlobe Aviation's earnings before interest, tax, depreciation, amortization and rentals (EBITDAR) grew by 61.8% to Rs 1581.10 crore in Q2 September 2017 over Q2 September 2016. EBITDAR margin expanded to 29.9% in Q2 September 2017, from 23.5% a year ago. The company's profitability was favourably impacted due to better revenue management compared to last year as well as credits received from Pratt & Whitney and Airbus related to aircraft groundings and delivery delays.

On the macro front, the eight core infrastructure sector, carrying 40.27% of the weight of items included in the Index of Industrial Production (IIP), has shown healthy 5.2% increase in its output in September 2017 over September 2016. Its cumulative growth was 3.3% in April-September 2017. The data was disclosed after market hours yesterday, 31 October 2017.

The World Bank, after market hours yesterday, 31 October 2017, released the Doing Business (DB) Report, 2018. India ranks 100 among 190 countries assessed by the Doing Business Team. India has leapt 30 ranks over its rank of 130 in the Doing Business Report 2017.

The World Bank report recognized India as one of the top 10 improvers in this year's assessment, having implemented reforms in 8 out of 10 Doing Business indicators. India is the only large country this year to have achieved such a significant shift. On the "distance to frontier metric," one of the key indicators in the survey, India's score went from 56.05 in Doing Business 2017 to 60.76 in Doing Business 2018. This means last year India improved its business regulations in absolute terms - indicating that the country is continuing its steady shift towards best practice in business regulation.

The report noted that India has adopted 37 reforms since 2003. Nearly half of these reforms have been implemented in the last four years. The report captured reforms implemented in 190 countries in the period 2 June 2016 to 1 June 2017.

Meanwhile, the Prime Minister, Narendra Modi hailed India's historic jump of 30 ranks in the World Bank's Doing Business Report, 2018 released yesterday. While terming the improvement in the rankings as historic, the Prime Minister in a series of tweets, said that the jump is the outcome of the all-round and multi-sectoral reform push of Team India. Modi promised to take steps to further improve the rankings.

Overseas, Asian shares were trading higher mirroring a positive close in the US market overnight. The Caixin China General Manufacturing Purchase Managers' Index (PMI) stood at 51 for October, flat from the September level, according to the survey conducted by financial information service provider Markit and sponsored by Caixin Media Co. A reading above 50 indicates expansion, while a reading below reflects contraction.

US stocks closed higher on Tuesday, with the Nasdaq ending at a record as quarterly results kept equities drifting near all-time highs. The Dow Jones Industrial Average rose 0.12%, the S&P 500 rose about 0.09% and the Nasdaq Composite Index advanced 0.43%.

US consumer confidence rose more than expected in October to the highest in almost 17 years as Americans grew more confident about the economy and job market, according to figures Tuesday from the New York-based Conference Board. Confidence index rose to 125.9, highest since December 2000, from 120.60 in September 2017.

The US Federal Reserve concludes a two-day policy meeting today, 1 November 2017, at which it is expected to leave interest rates unchanged. Most market participants expect the US central bank to resume hiking rates in December 2017.

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First Published: Nov 01 2017 | 10:31 AM IST

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